Why are extracted properties of food often cheaper than the whole food?

Question

For example, olive oil and olives, or orange juice and orange. Why is the extracted property of the food cheaper than the food itself?

In: Economics

Answer 1

In addition to other reasons mentioned: If I sell the whole orange, I sell it once.

Or I can squeeze the juice out and sell the orange juice.

Then I can run the peels through a distiller and extract the limonene in the peels and sell that as a degreaser.

Then I can sell the peel pulp as livestock fodder.

So I sell the orange 3 times instead of once. That gives me enough margin that I can (and probably need to) lower the price to be competitive with other orange processors/providers.